Dejouanys Strategy over CGE Essay Example | Topics and Well Written Essays - 1000 words - 1

Dejouanys Strategy over CGE - Essay Example Dejouany’s management style was not so highly decentralized that it allowed decision making at lower levels. Rather it follows the multidivisional structure, where the division of labor is created between the top managers and division managers, such that it is the division managers who focus on the operational details of the functional departments, while the top managers are able to concentrate on strategic decisions and long-range planning.(Vivendi).Dejouany selected quality people who were well versed in the developing opportunities in a particular area of business, investing cash into those cash-strapped businesses in order that the Company could benefit overall from the potentials inherent in those markets. Â  In pursuing his goals of diversification of CGE from a primarily water-based business into a diversified entity which dealt with real estate and health care among other businesses, Dejouany followed the internal capital market model of diversification. The diversification of CGI was undertaken in order to make use of the internal capital market. Since CGE was a cash-rich business, with vast cash resources accruing from its monopoly in the water business, it was able to enter into the various type of agreements with cash-strapped businesses for mutual benefit. One kind of agreement the Company entered into were agreements where it did not have to invest cash but merely managed the assets of municipalities’ water supplies.